Performance Management System at Steel Co.: Maximizing Performance

This report analyzes the performance management system at Steel Co., a small manufacturing firm, focusing on individual performance targets, employee development, and financial rewards. The report explores how a structural framework can maximize organizational performance by aligning employee activities with company goals. It examines how performance management systems can be used to enhance employee development, improve communication, and be integrated with other human resource processes. Furthermore, the report emphasizes the importance of linking performance effectiveness with financial rewards to motivate employees and achieve organizational objectives. The conclusion highlights the significance of effective performance management in achieving Steel Co.'s goals and retaining employees.

Managing People

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Structural framework of individual performance targets to maximize organizational
performance............................................................................................................................1
Ways through which performance management system can be used to improve employees
development and communications.........................................................................................2
Need of integration of performance management system with other human resource process
................................................................................................................................................2
Linkage of performance effectiveness with the financial reward..........................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Performance management is the process which is used in the organization to effectively
meet goals and objectives of the company (Boxall and Purcell, 2011). Basically, this helps the
firm to function for a longer period of time by engaging the workforce into several activities.
Steel Company (Co.) has been chosen as a part of current study. It is a small manufacturing firm
with sixty five male employees to manufacture steel (Gruman, 2005). The present report
discusses about the performance management of the individual in such form that the
performance of the firm can be enhanced. Performance management system is evaluated
effectively for improving employee’s development and communications. Further, performance
management systems are integrated with the human resource process to manage the entire
working by linking the performance effectiveness with the financial reward.
TASK
Structural framework of individual performance targets to maximize organizational performance
Each employee has certain characteristic to perform the role and manage entire working
in an effective manner. The organization performance can be enhanced with the help of
employing right person at the right place to manage entire work. There are various driving forces
which help the employees to enhance their working capabilities to carry out entire working in
Steel Co. (Nuti, Seghieri and Vainieri, 2013).
All organizations follow the specific structure to carry out the operations in order to meet
the desired objectives. Likewise, Steel Co. has also adopted the effective target policy which
helps the employees to manage their performance as per the aims and objectives. The employees
carry out the entire operations in the predefined framework which ensures that the objectives are
attained in an effective manner.
The entire work of the employees at Steel Co. is aligned in a systematic manner by
adopting time allocation tactics. This helps the employees to maximize individual potential as
well as organizational performance. The working of the employees is targeted towards the goals
which are required to be attained properly so that the entire functioning of Steel Co. is carried out
smoothly.
In order to maximize the organizational performance, Steel Co. has assigned proper
guideline to align their operational activities in a proper manner through which the work can be
managed and performance target can be attained effectively (Chiang and Birtch, 2012). With the
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help of effectual manpower, Steel Co can manage the entire working as per the set targets that
are achieved with the help of proper management. By monitoring and reviewing the functional
activities of employees, the lacking areas can be identified through which performance targets
can be enhanced which help in maximising the performance of Steel Co.
Ways through which performance management system can be used to improve employees
development and communications
There are different ways through which the performance management system can
enhance employee development and communications within the organization. The functional
structure of Steel Co. is very large and various operations are carried out simultaneously to meet
the defined goals and objectives (Stuss and et.al, 2003). Performance management system helps
in managing the performance of the employees by defining the specific policies which are
beneficial for the employees of Steel Co. The defined system helps the human resource to
develop various perspectives that are beneficial for them as well as for Steel Co. to manage the
entire working. Further, various activities such as training sessions and many others can be
integrated which will help the employees to develop over the larger perspective as they polishes
the skills and competencies of the employees (Young and O’byrne, 2001). With the help of
same, the employees are able to meet the deadlines of the project in an effective manner which
assists the Steel Co. to grow. Therefore, with the development of the organization, employee
development is also ensured and they have ample amount of opportunities within functional
structure of Steel Co.
Communication is the essential process that is carried out within the organization for the
purpose to exchange information with one another (Flynn, Huo and Zhao, 2010). The interaction
can be enhanced with the help of adopting various means of communication so that the
information gets floated within the organizational structure of Steel Co. in an effective manner.
With the up-gradation in the forms of communication like through electronic means, the
information can be passed on simultaneous basis to all the levels present within the organization.
By giving equal opportunities to the workforce to present their viewpoints, it also enhances their
potentiality as well as the communication skill at each level of Steel Co.
Need of integration of performance management system with other human resource process
The performance management system needs to be integrated with the human resource
process in order to manage the entire working of the employees so that they are able to meet the
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performance objectives. The organizational objectives are ascertained in order to make the
employees practise all the operational activities in proper manner through which goals of Steel
Co. are attained in a proper form (Kaplan and Norton, 2001). With the integration of
performance management system, business activities of Steel Co. are carried out effectively with
the help of the human resources. The work is framed up in group form so that it can be assigned
to team members so that employees become able to build effective team spirit to carry out the
various operations at Steel Co. With the effective management of human resource, the
performance of the employees can be managed and best result can be obtained out of it (Gruman,
2005). All the aspects of the human resource process are developed with the proper management
of various elements that are associated to enhance the work structure of Steel Co. Through
Human resource process, efficient individual is recruited in order to manage the entire working
at Steel Co. (Nuti, Seghieri and Vainieri, 2013). All the benefits are defined with the integration
of performance management system and human resource processes through which the
opportunities are gained by the employees to grow over the larger perspective. This aspect will
also encourage the employees of Steel Co. to deal with the issues that are encountered while
carrying out the operations that are associated with the entire working of the organization. With
the integration of both processes, Steel Co. can outsource their work for the smooth functioning
of the entire organization.
Linkage of performance effectiveness with the financial reward
Rewards are those elements which helps the employees to deliver the best result to Steel
Co. by achieving the goals and objectives in an effective manner. Reward act as motivator for the
employees to perform their roles and responsibilities and attain objectives of the organization.
The financial rewards are provided on the basis of the performance of the employees within Steel
Co. to carry out various operations (AQA Realizing Potential, 2016). Pay for performance reward
can be provided to the employees whose performance is extra ordinary within the organization in
achieving goals. Hence, this will motivate the employee as their performance is recognized
within the organizational structure of Steel Co. The manpower can be provided with fringe
benefits such as staff discounts, contribution in the travel cost that will motivate them to enhance
their performance through which organizational objectives can be attained in an effective
manner.
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Besides this, the company can set targets for the employees and with their attainment,
reward can be provided in the form of commission through which the performance of the
employees is valued (Young and O’byrne, 2001). Thus, workforces are able to achieve their
performance criteria in an effective manner. Steel Co. can also provide bonus to them over the
yearly basis so that through this they can be motivated and this will result in good performance.
With proper reward and recognition, they treat the organization as their own part and the
dedication towards their work is increased to a greater extent (Gruman, 2005). The reward can be
in various forms which help the employees to enhance their working in an effectual manner.
Further, Steel Co. can share certain part of their profit with the employees with respect to reward
them against the performance at the workplace. This will help them to obtain recognition within
the place where they work in order to attain the goals of the organization. Therefore, employees
of Steel Co. will be highly motivated with the help of these financial rewards which are
presented to them against their effective performance.
CONCLUSION
Performance need to be managed in an effective manner so that Steel Co. is able to attain
its goals and objectives in an effective manner. With the proper allocation of the work will help
the employees to perform their work and lead to meeting up the targets in a proper manner.
Further, it can be concluded that rewards act as the motivators for the employees as the
performance is valued against the reward and recognition. Through this, Steel Co. is able to
retain the employees for the longer duration and through their performance, the objectives can be
attained in an effective manner. All the aspects are effectively managed in order to manage the
entire working of Steel Co.
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REFERENCES
Books and Journals
Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
Chiang, F. F. and Birtch, T. A., 2012. The Performance Implications of Financial and Non‐
Financial Rewards: An Asian Nordic Comparison. Journal of Management Studies.
49(3). pp.538-570.
Flynn, B. B., Huo, B. and Zhao, X., 2010. The impact of supply chain integration on
performance: A contingency and configuration approach. Journal of operations
management. 28(1). pp.58-71.
Kaplan, R. S. and Norton, D. P., 2001. Transforming the balanced scorecard from performance
measurement to strategic management: Part II. Accounting Horizons. 15(2). pp.147-160.
Nuti, S., Seghieri, C. and Vainieri, M., 2013. Assessing the effectiveness of a performance
evaluation system in the public health care sector: some novel evidence from the Tuscany
region experience. Journal of Management & Governance. 17(1). pp.59-69.
Stuss and et.al., 2003. Staying on the job: the frontal lobes control individual performance
variability. Brain. 126(11). pp.2363-2380.
Young, S. D. and O’byrne, S. F., 2001. EVA and value-based management. New York.
Online
AQA Realizing Potential. 2016. Available through: < http://www.aqa.org.uk/subjects/business-
subjects/gcse/business-subjects-and-economics-4130/subject-content/unit-11>.
[Accessed on 17th February, 2016].
Gruman, G., 2005. Strategic HR Integration. [Online]. Available through: <
http://www.cio.com/article/2448598/enterprise-architecture/strategic-hr-
integration.html>. [Accessed on 17th February, 2016].
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